Thailand’s GDP to sustain growth in 2016

BANGKOK, January 4 (TNA) - The Kasikorn Research Centre (KRC) and CIMB Thai Bank agree that Thailand’s gross domestic production (GDP) growth in 2016 should sustain growth from 2015, thanks to rising domestic investment by both the public and private sectors. KRC Managing Director Chao Kengchon told journalists on Monday his centre has forecast that the Thai economy should grow by 3 per cent this year, compared with 2.8 per cent last year, boosted by the government's investment on new mega projects as earlier planned. Chao said private investment should also turnaround in 2016, after a contraction for three consecutive years. Besides, Thai exports, including those on automobiles and parts, are expected to slightly expand and should grow by 2-3 per cent on average this year. Chao acknowledged that prices of Thai agricultural products are likely to continue declining in line with global oil prices which are expected to fall by 4-5 per cent in 2016, after tumbling 50 per cent in 2015. Chao noted that Vietnam, which now enjoys some 10 per cent of export growth, should become Thailand's major competitor this year. According to KRC, domestic consumption remains a challenging problem in 2016 due to impacts from drought, which would depress income of local agriculturists, plus household debts which have soared to 80 per cent of the country's GDP this year. Meanwhile, Amornthep Chawalla, Vice President and Head of Economic and Financial Market Research of CIMB Thai Bank, told reporters that his bank has projected Thailand’s GDP in 2016 should grow by 3.3 per cent, compared to 2.7 per cent growth in 2015, boosted by domestic investment. Amornthep pointed out that Thai exports are likely to continue facing risk factors because the economies of Thailand’s major trading partners, including China, Japan and other members of the Association of Southeast Asian Nations (ASEAN), remain weak, suggesting that Thailand, thus, widen cross-border trade to ease impacts from the risk factors. On domestic consumption, the CIMB Thai Bank vice president projected that it should grow by less than 2 per cent. (TNA)